Bassett sales drop 18.9% in fourth quarter
By Furniture Today Staff -- Furniture Today, February 16, 2009
BASSETT, Va. — BASSETT, Va. — Bassett Furniture Inds. reported a net loss of $37.8 million for the quarter ended Nov. 28 as sales tumbled 18.9%.
Much of the net loss was attributed to a series of one-time charges — the largest of which was a $23.4 million write-off of the value of its deferred tax assets.
However, like virtually all other furniture manufacturers and retailers, the company said demand remained soft at retail and said it is anticipating a prolonged economic slump.
“We are in an extremely volatile and difficult environment and are focusing our efforts on the generation and preservation of cash,” said Rob Spilman, president and CEO.
At the end of the fiscal year on Nov. 28, inventories were 13% below the previous year, and he said employment had been reduced by 7%.
In addition, Spilman noted Bassett recently suspended its quarterly dividend as well as the employee matching contribution to its 401k plan.
Sales for the most recent quarter totaled $61.7 million, down from $76 million in the quarter ended Nov. 24, 2007.
The quarterly net loss of $37.8 million, or $3.24 per share, compares with a net loss of $3.98 million, or 34 cents per share, in the fourth quarter of fiscal 2007.
Besides the write-down of its deferred tax assets, other one-time charges in the quarter included $3.79 million for restructuring, a $1.94 million reduction in the value of its investment portfolio, and $256,000 for the costs of a recall of one of its cribs.
The company said comparable store sales fell 4.2% during the quarter at its company-owned Bassett Furniture Direct retail stores. However, comparable-store sales rose 2% for the 12 months ended Nov. 28.
The company ended the fiscal year with 31 company-owned retail stores and 84 stores operated by licensees. Six licensee stores were closed during the fourth quarter and two others were acquired by the company.
Sales for the full fiscal year fell 2.4% to $288.3 million. The net loss for the year totaled $40.4 million, or $3.46 per share. That compares with a loss of $9.9 million, or 84 cents per share, in the year ended Nov . 24, 2007.
Bassett Furniture Inds.
Owns Bassett Glass, Bassett Motion and Bassett Supply
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 11/29 | 2008 | 2007 | Change |
| (a) Includes $23.4 million write-down of deferred tax assets.(b) Includes $2.15 million for LRG settlement and debt reduction costs.(c) Includes $5.54 million in restructuring and asset impairment charges. |
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| Sales | $61,678,000 | $76,035,000 | (18.9%) |
| Operating income | (4,418,000) | 255,000 | — |
| Net income | (37,828,000) (a) | (3,978,000)(b) | — |
| Earnings per share | (3.24) | (0.34) | — |
| Year ended 11/29 | 2008 | 2007 | Change |
| Sales | $288,298,000 | $295,384,000 | (2.4%) |
| Operating income | 2,936,000 | (6,824,000) | — |
| Net income | (40,355,000)(a) | (9,910,000)(b)(c) | — |
| Earnings per share | (3.46) | (0.84) | — |
Financial results
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| (a) Includes net losses from discontinued operations of $9.8 million in the 2008 quarter, $95.2 million in the 2007 quarter, $18.5 million in the 2008 year and $70.6 million in the 2007 year. (b) Based on average shares outstanding of 161.8 million in the 2008 quarter, 175.4 million in the 2007 quarter, 168.2 million in the 2008 year and 179.8 million in the 2007 year. |
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| Flexsteel Inds. | |||
| Quarter ended 12/31 | 2008 | 2007 | Change |
| Sales | $84,549,730 | $105,985,985 | (20.2%) |
| Operating income | 737,684 | 3,251,357 | (77.3%) |
| Net income (a) | 295,876 | 1,868,177 | (84.2%) |
| Earnings per share | 0.04 | 0.28 | (85.7%) |
| 6 months ended 12/31 | 2008 | 2007 | Change |
| Sales | $175,966,613 | $206,886,348 | (14.9%) |
| Operating income | 1,104,133 | 5,451,815 | (79.7%) |
| Net income (a) | -453,378 | 3,050,827 | — |
| Earnings per share | -0.07 | 0.46 | — |
| (a) Includes facility consolidation and other pretax charges of $504,098 in the 2008 quarter and $1.9 million in the 2008 six months. | |||
| Leggett & Platt | |||
| Owns Fashion Bed Group (Berkshire, Dresher and J/B Ross), Harris-Hub, Duro-Metal, Bedline and L&P Consumer Products Division | |||
| Quarter ended 12/31 | 2008 | 2007 | Change |
| Sales | $882,500,000 | $1,039,700,000 | (15.1%) |
| Operating income | 4,400,000 | 66,700,000 | (93.4%) |
| Net income (a) | (18,000,000) | (212,600,000) | — |
| Earnings per share (b) | (0.11) | (1.21) | — |
| Year ended 12/31 | 2008 | 2007 | Change |
| Sales | $4,076,100,000 | $4,250,000,000 | (4.1%) |
| Operating income | 268,000,000 | 366,100,000 | (26.8%) |
| Net income (a) | 104,400,000 | (11,200,000) | — |
| Earnings per share (b) | 0.62 | (0.06) | — |
Bassett sales drop 22.9%
09/20/2009Bassett cuts net loss in 4Q
01/19/2002
